UGRO Capital Secures Rs 1,265 Cr Through CCDs, Warrants

Ugro Capital, a Datatech Non-Bank Financial Company (NBFC) focused on Micro, Small and Medium Enterprise (MSME) lending, announced completion of its equity capital raise today and the allotment of Compulsory Convertible Debentures (CCD) warranting worth Rs 1,265 crore. During a board meeting on 2nd May 2024, the Company’s Board of Directors approved an equity capital raise of Rs 1,332.66 crore, coinciding with the peak of the Indian general elections. 

On 1 June 2024, Ugro Capital received the Shareholders’ approval and allotted CCDs worth Rs 258 crores and warrants worth Rs 1,007 crores. They were backed by existing private equity investor Samena Capital that committed Rs 500 Crores through Warrants and other institutional investors such as Aregence and several of India’s marquee family offices. Ugro’s founder, board members and management team also subscribed to the Warrants issue. 

Subscribers can pay 25 per cent of the issue price on the date of allotment and pay the remaining amount 18 months later. 

Shachindra Nath, Founder and Managing Director of Ugro Capital said “Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us. Our aim has always been to build a DataTech driven lending institution that is institutionally owned, independently supervised and professionally managed, accessible to public market investors. We're now closer to our goal of helping all small businesses in India and I have an overwhelming sense of gratitude towards all our investors, partners and the entire Ugro team for making it happen.” 

In 2018, Shachindra Nath acquired a 40 Crores net worth listed NBFC, 'Chokhani Securities Limited’ and executed the concept of India’s first listed start-up. It raised institutional equity capital of Rs 914 Crores from investors including TPG - NewQuest, PAG, ADV Capital, Samena Capital and other domestic family offices and public market investors. 

Through its Danish Sustainable Development Goals Investment Fund K/S and Rs 100.5 Crores from other institutional shareholders through a Qualified Institutions Placement (QIP), Ugro Capital raised Rs 340.5 Crores last year, including Rs 240 Crores from Denmark Government owned IFU. 

Ugro Capital has raised total equity capital commitment of Rs 2,700 Crores, has a total debt of Rs 4,643 Crores from domestic and global institution and has partnered with 13 Banks and other Financial Institution for doing 3,295 Crores of Co-Lending. It has extended data-driven customized finance solutions to over 78,000 MSMEs across India.